Hongxing Development: Investor Relations Activity Record on March 18, Participated by Guolian Minsheng Securities Co., Ltd.

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Securities Star News, on March 18, 2026, Red Star Development (600367) investor relations activity record, participated by Guolian Minsheng Securities Co., Ltd. researcher Qiu Zuxue and researcher Wei Zechen.

The specific content is as follows:

Q: The company’s 290,000-ton capacity for barium carbonate—what is the current annual production?

A: The company’s barium carbonate production in 2023 and 2024 was 229,400 tons and 208,900 tons, respectively.

Q: What industries are the downstream applications of strontium salts used in?

A: Strontium salts are mainly used in magnetic materials, LCD glass substrates, metal smelting, fireworks, and other deep-processing industries of strontium salts.

Q: What are the sources of raw materials for the company’s production of strontium salts?

A: The raw material, celestite, used by the company’s subsidiary to produce strontium salts is mainly purchased from local mines in Chongqing. The company also imports some mineral resources based on market conditions.

Q: How much celestite reserves does the company currently have?

A: The subsidiary has made reasonable reserves of celestite based on local mining conditions in Chongqing, with current reserves approximately between 35,000 and 40,000 tons.

Q: What is the current progress of the Chongqing Ruide SiDa optoelectronic new materials project, which is part of the fundraising investment?

A: The Chongqing Ruide SiDa optoelectronic new materials project started trial production in February 2026. Currently, the production line is being debugged and has not yet reached full capacity.

Q: How often is the pricing cycle for local celestite mines in Chongqing determined, and how long has the company been cooperating with local mines?

A: The company’s subsidiary has maintained stable cooperation with local mines in Chongqing for many years. Currently, mineral prices are negotiated quarterly, mainly based on the market prices of strontium carbonate and imported celestite, to determine the supply price for the next quarter.

Q: What is the current supply price of celestite?

A: The supply price from mines in the first quarter of 2026 is about 1,100 RMB per ton.

Q: Does the current international situation have a direct impact on the company’s production and operations?

A: Since the raw materials for producing strontium carbonate are mainly purchased locally in Chongqing, with a small proportion imported from abroad, the impact on the company’s operations is limited. The subsidiary is actively debugging trial production, and raw material reserves are relatively sufficient.

Q: What is the annual production of sulfur as a byproduct? How much has the rising sulfur price affected the company’s profits?

A: The company and its subsidiaries utilize hydrogen sulfide gases produced as byproducts of barium and strontium salt production to produce sulfur. In 2023, production was 34,000 tons; in 2024, 36,000 tons. The increase in sulfur sales prices positively impacts the company’s profits.

Q: Besides the main project of the fundraising for the strontium carbonate production line, are there other ongoing projects?

A: Currently, the parent company is preparing to build a 20,000-ton/year high-purity thiourea project. Additionally, its wholly-owned subsidiary, Guizhou Tianzhu Hongxing Development New Materials Co., Ltd., plans to develop the “Tianzhu County Barium Salt Fine Chemical Products Project,” which will include a 100,000-ton/year barium carbonate production line and a byproduct sulfur production line of 16,000 tons/year. These projects have completed decision-making and disclosure procedures, and detailed information can be found in the company’s previously disclosed interim announcements.

Red Star Development (600367) main business: R&D, production, and sales of barium salts, strontium salts, and manganese-based products.

According to Red Star Development’s 2025 Q3 report, the company’s main business revenue in the first three quarters was 1.609 billion RMB, a slight decrease of 0.14% year-over-year; net profit attributable to shareholders was 107 million RMB, up 86.78%; net profit after deducting non-recurring gains and losses was 105 million RMB, up 93.4%. In Q3 2025 alone, the company’s quarterly main business revenue was 528 million RMB, down 7.14% year-over-year; net profit attributable to shareholders was 28.93 million RMB, down 14.76%; net profit after deducting non-recurring gains and losses was 27.69 million RMB, down 12.09%. The debt ratio is 16.63%, investment income is 0, financial expenses are -4.86 million RMB, and gross profit margin is 25.4%.

Margin financing and securities lending data show that net financing inflow over the past three months was 344 million RMB, with an increase in financing balance; net securities lending inflow was 502,800 RMB, with an increase in securities lending balance.